You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Kospi's Nightmare Settle: Aug 13, '09
- Thread starter Sell 'em
- Start date
Quote from dont:
What is up with the Mar futures
Trading at 213.25 Dec Futures at 215.05.
Well that's it for me I will wait until Thursdays close out I don't like it when I see things I don't understand.
How the hell does an equity future trade in backwardation?
Holders of the futures contract will not collect dividends paid out by some of the underlying stocks between now and March. Stock/index holders will. As those dividends are paid, the index will converge to the futures price.
This is Index Futures 101. Look it up.
Quote from Sell 'em:
This is Index Futures 101. Look it up.
Testy testy for one who asks questions on this forum, learn some manners you troll.
So all the shares in the Kospi pay their dividends between December and March close outs? and the market knows exactly what all 200 dividends payments are likely to be?
Yes, the market knows with higher and higher probability what the dividend distributions for individual constituents will be. I highly recommend learning to price futures if you're going to trade them.
Sell'em is right in saying that this is futures 101. I would hardly call his statement trolling.
Sell'em is right in saying that this is futures 101. I would hardly call his statement trolling.
Quote from dont:
Testy testy for one who asks questions on this forum, learn some manners you troll.
So all the shares in the Kospi pay their dividends between December and March close outs? and the market knows exactly what all 200 dividends payments are likely to be?